Agenda item

a)  Leeds City Council Revenue Budget and Council Tax 2018/2019

To consider the report of the Chief Officer Financial Services on the proposals for the City Council’s Revenue Budget for 2018/2019 and the Leeds element of the Council Tax to be levied on 2018/2019

b)  Capital Programme Update 2018 – 2021

To consider the report of the Chief Officer Financial Services on the Capital programme for the period 2018 – 2021

c)  Treasury Management Strategy 2018/2019

To consider the report of the Chief Officer Financial Services on the Treasury Management Policy and Strategy for 2018/2019

Further to Minute No.124, 13th December 2017, the Chief Officer, Financial Services submitted a report regarding the proposals for the City Council’s Revenue Budget for 2018/2019 and the Leeds element of the Council Tax to be levied in 2018/2019.

With the agreement of the Chair, Board Members were in receipt of a supplementary addendum together with associated revised recommendations arising from the late receipt of information regarding the level of resources available to the Authority.

The updated information highlighted that the level of additional resource available to the City Council in respect of the 2018/19 revenue budget was £2,825k, and due to the short notice at which this information had become available, it was proposed for the purposes of recognising this additional resource in the 2018/19 budget, that £756k of it should be placed within the Council’s General Reserve (which would increase the overall budgeted contribution to £1,756k in 2018/19) and £2,069k should be placed within an earmarked reserve for Adult Social Care, with proposals to use the additional resource being developed as appropriate.

Responding to a Member’s enquiry, the Board received further detail on the total sum of Business Rates Retention monies that the Council would receive in 2018/19.

(A) 2018/2019 Revenue Budget and Council Tax

RESOLVED –

(a)  That Executive Board recommends to Council the adoption of the following, subject to the inclusion of the proposed changes to the submitted 2018/19 Revenue Budget as set out within the addendum:-

i)  That the revenue budget for 2018/19 totalling £510.9m be approved. This means that the Leeds element of the Council Tax for 2018/19 will increase by 2.99% plus the Adult Social Care precept of 2%. This excludes the Police and Fire precepts which will be incorporated into the report to be submitted to Council on the 21st February 2018. The proposed changes to the submitted 2018/19 Revenue Budget, as set out within the addendum will also be incorporated into the report to be submitted to Council;

ii)  That approval be given for grants totalling £70k to be allocated to parishes;

iii)  That approval be given to the strategy at Appendix 9 of the submitted report in respect of the flexible use of capital receipts;

iv)  That, in respect of the Housing Revenue Account Council be recommended to approve the budget with:-

·  A reduction of 1% in dwelling rents in non-Private Finance Initiative areas.

·  An increase of 3% in dwelling rents in PFI areas.

·  A 3.9% increase in district heating charges.

·  That service charges for multi-story flats are increased by £2 per week.

·  That service charges for low/medium rise properties are increased by 3.9%.

·  That the charge for tenants who benefit from the sheltered support service currently paying £4 a week be increased to £6 per week.

·  That any overall increase to tenants in respect of rents, service and sheltered support charges will be no more than £5 per week.

(b)  That officers be authorised to begin consultations without delay on the proposals to increase existing fees and charges;

(c)  That agreement be given to the proposals for the local Business Rates discount scheme for 2018/19, namely:-

i)  to limit the increase faced by small and medium businesses with a rateable value between £20,000 and £100,000 to 11% above the gross rates that would have been payable in 2017/18.

ii)  to freeze the increase faced by businesses who solely provide childcare to the gross level of rates payable in 2017/18, where this increase is as a result of the revaluation.

(d)  That agreement be given for any savings in the budget for ‘looked after children’ should be transferred to an earmarked reserve so that it can be used to deal with any future variations in demand;

(e)  That Executive Board’s thanks be extended to Scrutiny Boards for their comments and observations in consideration of the Council’s initial budget proposals.

(B) Capital Programme Update 2018 – 2021

The Chief Officer Financial Services submitted a report setting out the proposed Capital Programme for the period 2018-2021.

RESOLVED –

(a)  That Executive Board recommends to Council:-

(i)  the approval of the Capital Programme for 2018-21 totalling £1,472.3m, including the revised projected position for 2017/18, as presented in Appendix F to the submitted report;

(ii)  the approval of the revised MRP policy for 2018/19 as set out in Appendix D to the submitted report.

(b)  That Executive Board approval be given to the list of land and property sites shown in Appendix B to the submitted report, to be disposed of in order to generate capital receipts for use in accordance with the MRP policy;

(c)  That Executive Board approval be given to the following injections into the capital programme:-

·  £136.6m, of annual programmes as set out in Appendix A(iii) to the submitted report, to be funded by £41.7m LCC borrowing, £73.1m of HRA specific resources and £21.8m of general fund specific resources;

·  £104.6m, of pressures as set out in Appendix A(iii) to the submitted report, to be funded by £80.4m of  net borrowing and £24.2m of general fund specific resources.

(With it being noted that the above decisions to inject funding of £241.2m will be implemented by the Chief Officer (Financial Services)).

(C) Treasury Management Strategy 2018/2019

The Chief Officer Financial Services submitted a report setting out the Treasury Management Strategy for 2018/2019 and the revised affordable borrowing limits under the prudential framework. The report also provided a review of strategy and operations in 2017/18.

Responding to a Member’s comments, the Board received further information on the Council’s approach towards the cost of borrowing and how the overall approach taken aimed to maintain the correct balance between long and short term loans in order ensure that such costs remained affordable. Assurance was also provided on how such matters continued to be monitored and how the costs associated with the Council’s borrowing were factored into the budget and the longer term financial strategy.

RESOLVED –

(a)  That the Treasury Strategy for 2018/19, as set out in Section 3.3 of the submitted report be approved, and that the review of the 2017/18 strategy and operations, as set out in Sections 3.1 and 3.2 of the submitted report, be noted;

(b)  That it be noted that the revised CIPFA Codes and Practice and DCLG guidance will be adopted and reported to full Council when fully issued, and that it also be noted that the Council has implemented the European Union Market in Financial Instruments Directive (MiFIDII) legislation, with effect from 3^rd January 2018;

(c)  That full Council be recommended to set the borrowing limits for 2017/18, 2018/19, 2019/20 and 2020/21 as detailed in Section 3.4 of the submitted report, with Council being recommended to note the changes to both the Operational Boundary and the Authorised limits;

(d)  That full Council be recommended to set the treasury management indicators for 2017/18, 2018/19, 2019/20 and 2020/21, as detailed in Section 3.5 of the submitted report;

(e)  That full Council be recommended to set the investment limits for 2017/18, 2018/19, 2019/20 and 2020/21 as detailed in Section 3.6 of the submitted report;

(f)  That full Council be recommended to adopt the revised Treasury Management Policy Statement.

(The matters referred to in Minute Nos. 144(A)(a)(i)-(iv)(Revenue Budget and

Council Tax); 144(B)(a)(i)-(ii)(Capital Programme) and 144(C)(c)-(f)(Treasury

Management Strategy), given that they were decisions being made in accordance with the Budget and Policy Framework Procedure Rules, were not eligible for Call In)

(Under the provisions of Council Procedure Rule 16.5, Councillors A Carter and Golton both required it to recorded that they respectively abstained from voting on the decisions referred to within this minute)